§ 18441 Loan-Related Purchase Prohibition

Financial Code·California

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Key Takeaways

•When you take a loan, no one can force you to buy extra stuff just to get the loan.
•You can’t be made to sign extra agreements or contracts unless the law says it’s okay.
•Insurance for the loan is allowed, but nothing else can be forced on you.

Example

You go to a bank to get a loan for a car.

The bank can’t say, 'You can only get the loan if you buy our special car warranty or sign up for our club.' They can ask you to get insurance for the car, but that’s it.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 18441 Loan-Related Purchase Prohibition

No person in connection with or incidental to the making of any loan under this division, shall require the borrower to contract for, purchase, or agree to purchase anything in connection with the loan. A policy of insurance of the type specified in Article 6 (commencing with Section 18290) of Chapter 3 of this division is not prohibited by this section. No person shall require a borrower to enter into any collateral sales agreement or contract except as expressly permitted by this division. (Added by Stats. 1976, Ch. 964.)

Last verified: January 23, 2026

Key Terms

loan policy of insurance collateral sales agreement

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 18441.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References